This exercise enables you to practice identifying investing and financing activities.
Instructions
Place the appropriate code in the blanks to identify each of the following transactions as giving rise to an:
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Code |
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II |
inflow of cash due to an investing activity, or |
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IO |
outflow of cash due to an investing activity, or |
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FI |
inflow of cash due to a financing activity, or |
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FO |
outflow of cash due to a financing activity |
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1. |
Sell common stock to new stockholders. |
6. |
Sell investment in real estate. |
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2. |
Purchase treasury stock. |
7. |
Loan money to an affiliate. |
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8. |
Collect on loan to affiliate. |
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3. |
Borrow money trom bank by issuance of short-term note. |
9. |
Buy equipment. |
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4. |
Repay money borrowed from bank. |
10. |
Sell a plant asset. |
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5. |
Purchase bonds as an investment. |
11. |
Pay cash dividends to stockholders. |
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